Rio Tinto invests US$15 million in Mogotes Metals

Mogotes Metals has closed a US$15 million (approximately C$21 million) strategic investment from Rio Tinto Canada. The placement, which involved Rio Tinto subscribing for roughly 30.39 million units at C$0.70 per unit, grants the mining giant an initial stake of approximately 5% in Mogotes.

The investment facilitates a strategic and technical alliance focused on the Filo Sur copper-gold-silver project located in the Vicuña district, spanning Argentina and Chile. Under the terms of the agreement, the companies will establish a joint technical committee and utilize Rio Tinto’s proprietary geoscience tools to advance exploration efforts. The alliance also includes provisions for expanding the consolidated land position and may potentially extend to other regions, such as Kazakhstan.

In addition to the Rio Tinto placement, Mogotes issued approximately 8 million units to existing investors exercising pre-emptive rights, raising an additional C$5.6 million. Rio Tinto has secured a 15-month exclusivity period on the Filo Sur project and holds rights to increase its ownership up to 9.99% on a partially diluted basis.